Bills Digest No. 102 2001-02
Appropriation Bill (No. 4) 2001-2002
WARNING:
This Digest was prepared for debate. It reflects the legislation as introduced
and does not canvass subsequent amendments. This Digest does not have
any official legal status. Other sources should be consulted to determine
the subsequent official status of the Bill.
CONTENTS
Passage History
Purpose
Background
Main Provisions
Contact Officer & Copyright Details
Passage History
Appropriation Bill (No. 4) 2001-2002
Date Introduced:
14 February 2002
House: House
of Representatives
Portfolio: Finance
and Administration
Commencement: Royal
Assent
To authorise the Minister for Finance
to issue $1 173 913 000 from the Consolidated Revenue Fund
(CRF) in addition to the funds appropriated by the Appropriation Act
(No. 2) 2001-2002 for proposed expenditure on capital works and services,
payments to the States and Territories and other services.
For general information on the Appropriation process
refer to Bills Digest for the Appropriation Bill (No. 3) 2001-02.
As noted in the Second Reading Speech to the Appropriation
Bill (No. 3) 2001-2002, there have also been savings in various items
from the Budget appropriations and this must be considered when determining
the total effect on government outlays from the additional amounts appropriated.
Savings from the initial amount appropriated by Appropriation Acts Nos.
1 and 2 are contained in the Department of Finance and Administration
Information Paper titled Statement of Savings in Annual Appropriations.
Funding for expenditure other than for 'the ordinary
annual services of government', principally capital expenditure and grants
to the States and Territories, is contained in Appropriation Act No.
2 2001-2002 and this Bill. The Appropriation Act (No. 2) appropriated
$4 524 716 000 while this Bill appropriates an additional
$1 173 913 000.
Outline of Major Additional
Appropriations
Major additional appropriations effected by this Bill
are:
- Defence: $843 611 000 is sought to be appropriated
for the Defence portfolio. As stated in Schedule 2 of the Bill, this
total comprises $743 611 000 in equity injections for the
Department of Defence and $100 000 000 in loans for the Defence
Housing Authority. The Second Reading Speech to the Bill states that
the $743 611 000 equity injection for the Department of Defence
is for funding:
- the war against terrorism and unauthorised boat arrivals ($103
million)
- parameter and foreign exchange adjustments ($72 million)
- provision to Defence of a share of the proceeds from the sale
of the Melbourne and Sydney Plazas ($79 million), and
- $489 million to meet costs incurred in 2000-2001 and funding
for the purchase of specialist military equipment, inventory and
other capital requirements.
The reader is referred to the Portfolio Additional Estimates
Statements for the Department of Defence for details as to the moneys
sought under this portfolio: (http://www.defence.gov.au/budget/01-02paes/menu.htm).
Treasury: a total of $195 177 000 million
is sought to be appropriated by the Department of the Treasury. As stated
in Schedule 2 of the Bill, this total comprises $194 998 000
for the "[E]ffective government spending and taxation arrangements",
and $179 000 for "[A]dministered capital". The reader is
referred to the Portfolio Additional Estimates Statements for the Department
of the Treasury for details as to the moneys sought under this portfolio:
(http://www.budget.gov.au/paes/index.htm).
The $194 998 000 is for administered expenses in relation to
the First Home Owners Scheme.
Immigration and Multicultural and Indigenous Affairs:
a total of $47 539 000 is sought to be appropriated by the
Department of Immigration and Multicultural and Indigenous Affairs. As
stated in Schedule 2 of the Bill, this total comprises $102 000 for
"[A] society which values Australian citizenship, appreciates cultural
diversity and enables migrants to participate equitably, $46 300 000
in equity injections, and $1 137 000 carryover from previous
years to the Migration Review Tribunal. The Second Reading Speech to the
Bill states that "an additional $45 million equity injection for
the Department of Immigration and Multicultural and Indigenous Affairs
to provide for detention contingency for unauthorised arrivals in Australia."
The reader is referred to the Portfolio Additional Estimates Statements
for the Department of Immigration and Multicultural and Indigenous Affairs
for details as to the moneys sought under this portfolio: (http://www.minister.immi.gov.au/general/paes01.pdf).
In regard to allocation to the States for the outcomes
specified in the Schedule, clause 7 provides that the Finance Minister
may issue the lesser of the amount specified in the relevant Departmental
allocation and the amount determined by the Finance Minister to be the
actual expenditure incurred for that purpose. The clause also contains
the requirement that the funds may only be allocated to achieve the specified
outcome.
Clause 8 contains similar provisions as clause
7 but relates to administered items.
Where an appropriation is made for an administered capital
purpose, the outcome that may be achieved must be for a purpose listed
in Schedule 2 of the Bill or in a Schedule to a 2001-2002 Appropriation
Act (clause 9).
In relation to appropriations for capital expenditure
for a Department, where an Act provides that an amount is to be allocated
to a Department and this Bill contains a capital item for the Department,
the Finance Minister must issue the full amount of the item (clause
10).
The Minister will be given power to issue up to an additional
of $215 million over the year to take account of unforeseen expenditure
or where there has been an 'erroneous omission or understatement' in relation
to extra expenses (clause 11).
The relevant Minister listed in Schedule 1 of the Bill
will be able to determine conditions under which payments to the States
and Territories may be made (clause 14).
Clause 15 will formally appropriate the funds
for the purposes of the Bill.
Ian Ireland
13 March 2002
Bills Digest Service
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ISSN 1328-8091
© Commonwealth of Australia 2002
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